Can Canadian Buyers Avoid PayPal US Conversion Fees - Buying from China Sellers?

[bearlover69]

Just as the Subject Line Asks...

I'm in Canada, buying Several Items from China using PayPal.
So can I avoid the Conversion Fees - and I'm Wondering if I'm Paying too Much.

The Total of Today's Order is $26.91 US

Using PayPal at Check Out it Says $35.45 CAN
Exchange rate: CAD 1.00 = USD 0.76
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When I look up the Exchange Rate on Google it say:
US $1.00 = CAN $1.25

If I use the Google Conversion Calculator -the Total is $33.68 CAN
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*Can I Make a Deposit to my PayPal Account from my Bank -Then use my PayPal Balance,  to Avoid the Conversion Fee?
*Can I ask the Seller to Send an Invoice in $CAN?


I know it doesn't seem like much - but I have a Very MODEST INCOME - I use eBay and PayPal OFTEN for Shopping.
Also, if there's a Problem with the Purchase and there's a REFUND... I tend to Loose the Conversion Fee.
Then there's also my Banking Transaction Fees which Add Up. Recently an Increase in U.S. and Canadian Sellers Charging Sales TAX too.  

Suggestions Appreciated... 
I've been doing a Great Deal of Shopping in other Online Stores (lately) because I feel Like I'm Getting Gouged.

Thanks.

[femmefan1946 · Accepted solution]

You are looking at the Buy price and comparing it  to the Sell price.

The exchange rate when you are looking at the listing is approximate to the Mid-Market Rate at that moment.

The exchange rate when you buy is the retail rate at the moment you pay.

If you have your PP account set up with an American bank, you can accept payments in US dollars, make payments in US dollars, and carry a balance in US dollars.

BUT

An American bank is not a Canadian bank account in uS dollars. You need an actual licensed in the USA, American, flag waving, MURICA!, bank.

For Canadians this could be RBCBank or TDNorth. Ask at your Royal or Toronto-Dominion branch about these. There is a relationship.

*Can I ask the Seller to Send an Invoice in $CAN?

No.

He sells in US dollars and is paid in US dollars. He can't change that, and in any case, he is even less likely to be interested in an "off-brand" currency than he is to get the arithmetic right.

PP does the changing for him (and you) and charges a fee for that on top of the difference in buy/sell rates.

Sales Taxes.

You do not pay sales taxes to US or other foreign states.

You do pay GST/PST/HST to Canada if your seller is registered to collect and remit Canadian taxes.

• Most eBay seller are not.
• Most who are will say so in their Description or their Shipping page.
• I think it is GST where the seller must include their Tax Registration number on every invoice.

You do pay import fees, which will include Canadian sales taxes on any import /purchase valued over $40 and Canadian duty on any purchase valued over $150. This is a higher import fee allowance than before July 2021,so you owe less on any given import,  but it is being enforced more stringently.

[bearlover69]

I live in Canada, and use CIBC/ScotiaBank -Debit for Most Transaction which cannot be Completed with Cash.. which is ALL ONLINE SHOPPING.

as Per Your Comment:
"You do pay import fees, which will include Canadian sales taxes on any import /purchase valued over $40"
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Unfortunately, I guess if you're Canadian and Buy Canadian - You're Paying More than if You were Living in the Good Ol' U.S. of A... Making an Internation Purchase?  Because I recently Paid Tax on an Order $25.25 + 3.79GST -from Within Canada  - Going from Ontario to Nova Scotia. 
Hmmm, so What's Up with that?!  (No Reply Necessary)

[femmefan1946]

Your NS seller is registered to collect and remit GST-- because he is registered to remit sales taxes in NS, and that includes the federal GST.

Was the total payment $25.25 or was there also a shipping charge?

Five per cent of $25.25 would only be $1.26. But if the shipping was charged separately, there would be GST on that, since its a Goods and SERVICES tax.  That would be a $50 or so shipping charge though.

[bearlover69]

Seller charged the GST being 15% of the Purchase Price, which is Provincial and Federal- Sales Tax.
I actually don't see a GST Registration # on the listing.

The order included Free Shipping.  It was the BEST PRICE for the ITEM - All Said!

[marnotom!]

When I was a kid, I'd get birthday presents from my grans in the UK in the form of pound notes and fivers.  What I learned is that bank exchange rates are a bit different than the ones you see in the newspaper.

The way I see it is that market currency exchange rates are like Costco, while bank exchange rates are like regular retailers.  You need to have an "in" and a lot of currency to exchange to get those market rates, just as if you want to get a great deal on soup at Costco, you're going to have to have a membership and buy a lot of it, compared to buying it from Sobeys.

If you're paying with a credit card, you can choose to have your credit card issuer convert the currency instead of PayPal, but my experience is that credit card exchange rates are a little to a lot worse than those of PayPal's, which are pretty competitive with bank exchange rates.  I don't know if you can do the same thing with a Canadian debit card or PayPal bank transfer, however.